graham
About
- Username
- graham
- Joined
- Visits
- 4,032
- Last Active
- Roles
- Administrator
Comments
-
First, here is an excerpt from the example SAO from Chapter 16 of Odomirok. This the identification section and demonstrates acceptable language: It might also help to review this section in the wiki: * https://battleacts6us.ca/wiki6us/C…
-
I know exactly what you mean but it only seems backwards. Here are 2 examples: Example 1: Carried Reserve + Materiality Standard > Range * carried reserve = 200 * range: (195, 205) * materiality standard = 10 Here there is no risk o…
-
This was one of those "Bloom's Taxonomy" questions that covered more than one reading. It was largely about credit which is why I put it in that particular wiki article, but you need to refer to other wiki articles also to fully understand the solut…
-
Yes. The penalty for recoverables overdue 90 days is accounted for in the provision for reinsurance, which effectively reduces the value of the admitted asset anyway, even if the full value of the recoverable is still considered admitted. Accordi…
-
No, that's not correct. The provision for reinsurance is for amounts due from reinsurers. The item in this question is "uncollected premiums and agents' balances" and that is separate from reinsurance recoverables.
-
There is no single correct answer for the standard of materiality, although some answers certainly make more sense than others. Your first and third statements above are correct because you must use the carried reserves in the test. * (reser…
-
I believe these 3 exam questions are asking about the same thing so you should be able to use any of the LAPP answers and get full credit. I'm not sure why the answers given in the examiner's reports are all different, but that does sometimes happen…
-
Yes, it does include IBNR. Schedule P, Part 2 is labelled as "Incurred Loss" but it's actually "Ultimate Loss". That's why Part 2 - Part 3 includes IBNR. (It's confusing, but that's the way it's done in the annual statement.) So you don't actually n…
-
If they catch the error, I think the graders would probably deduct something small, but there's a chance they wouldn't even notice. It probably helps if you make sure your final answer is easy to find on the Excel worksheet. (When I used to grade…
-
Yes, I forgot to go back and change that. Thanks for pointing it out. I've changed it to remove the prior year development that was used in calculating IRIS 11. I almost didn't even include an example where you had recalculate IRIS 5 due to an un…
-
Yes, that's correct. Thank you for letting me know. I've corrected it. I'm sending you a message. Click the envelope under your name in the top left of this screen.
-
The labels for "Surplus" and "Surplus Paid In" were reversed. I've corrected it. Thx.
-
As you noted, this has come up twice in old exam problems. I included a footnote to the BattleTable about the 2018 problem: * The answers to part (c) & (d) in the examiner's report are wrong. Most of the advantages listed for the ERD method…
-
I double-checked the source text and it says what you said above: * The reason for this exemption is that it allows companies to acquire qualifying reinsurance on inherently profitable books of business where it may not be reasonably possible t…
-
You're correct. The treatment of reinsurance does not seem to align with purpose of SAP and GAAP. This question came up in this exam problem on the differences between SAP and GAAP: * https://battleacts6us.ca/pdf/Exam_(2018_2-Fall)/(2018_2-Fall…
-
Yes, those questions are outdated. Take a look at the Study Tips for the RBC wiki article here: * https://battleacts6us.ca/wiki6us/Odomirok.19-RBC#Study_Tips Catastrophe risk and operational are now part of the RBC formula (not in developme…
-
The BattleCard answer is taken from examiner's reports when the question on SAP vs GAAP for discounting loss reserves has been asked. That question has been asked several times on past exams but the examiner's reports always seem to give somewhat di…
-
Here, the term "asset" could mean something like buying furniture for the office, not necessarily just a DAC asset. The example under the table in the wiki was just to demonstrate the idea of matching. Under SAP, you recognize the expense essenti…
-
Sorry, I wasn't careful when I wrote that inequality. It's actually just the unpaid loss & LAE component of R4 that should be used to test this inequality. (That portion is usally almost the whole R4 charge anyway however, and the inequality for…
-
I would agree with that. One final comment: (I hope this doesn't confuse the issue further.) I just reread the exam question and my answer to your post, and I noticed that the common error listed in the examiner's report was mistakenly saying …
-
Sounds good to me. I like your use of "outgoings" and "incomings". The outgoings include several items, as do you the incomings, as described in your post.
-
I tried to think of a way to categorize them without specifically memorizing them, but once you've spent the time required to figure out a rule of thumb, you probably would have memorized them anyway. I think if you want to know these items, the …
-
Cheeky is being kind! It was straight memorization! The SSAP-55 reading doesn't provide much of a formal definition of DCC and A&O beyond what the acronyms mean: * DCC is Defense and Cost Containment * ACC is Adjusting and Other The…
-
You're right that they both serve the purpose of providing insurance to customers who cannot find coverage in the primary market. Residual markets aren't restricted to personal auto, although that's probably the common type. There are residual marke…
-
Those formulas look correct. Your main question seems to be how to know when you have to subtract investment expenses. * In the 2017 problem, you're given net investment gain. That means investment expenses have already been subtracted so you c…
-
Yes, that's correct. That list is provided in the first paragraph in section 3 of COPLFR. And an example of the language that could be used for this is:
-
Link to exam question: * https://battleacts6us.ca/pdf/Exam_(2019_1-Spring)/(2019_1-Spring)_(10)_v2.pdf Something is strange in this question. I agree that what the examiner's report did doesn't make sense. Adding the UEPR for both 2016 and …
-
Link to exam question: * https://battleacts6us.ca/pdf/Exam_(2014_1-Spring)/(2014_1-Spring)_(25).pdf You can't tell which type of pool it is from the information given in the problem so an answer referring to either one should be acceptable.…
-
I don't think that would be a good idea! They should really not provide dividend information at all so you shouldn't have to deal with it. (If they do provide dividend information, I would include a comment that dividend taxation was removed in t…
-
The trick is that they said "tax dollars due to the commutation" and this is just a different way of saying "change in taxable income". So for this problem, it's basically the same thing because were are only concerned with the effects of the commu…